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Central BanksMediumUpdated•Originally published 6 October 2026•Updated 6 October 2026•
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BOJ's Sato Signals Support for Gradual Rate Hikes Amid Inflation Risks

Key Facts

1BOJ board member Ayano Sato stated she supports raising interest rates in several stages as financial conditions remain accommodative.
2Sato noted that risks to the price outlook are skewed to the upside due to rising oil costs from the Middle East conflict.
3Sato was one of two board members who voted against the rate hike to 1.25% during the September meeting.

BOJ board member Ayano Sato stated she supports raising interest rates in several stages as financial conditions remain accommodative. Kyodo News reported that Sato, who was one of two board members to vote against the rate hike to 1.25% during the September meeting, signaled she is not opposed to further tightening but rather to a pre-set pace for hikes.

Sato noted that risks to the price outlook are skewed to the upside due to rising oil costs resulting from the Middle East conflict. This shift in stance follows data from September 29, 2026, which showed Japanese industrial production fell by 1.7% month-on-month, while annual retail sales grew by 2.7%.

Latest Updates · 1

  1. Notable·

    Update: Government data released on October 6, 2026, showed Japan's real wages rose 1.5% year-on-year in August, marking the eighth consecutive monthly increase. Base salaries grew by nearly 4%, reinforcing expectations of sustained wage-driven inflationary pressures.